TAX NEWS - June 2010

Indonesia Tax: Deputy Attorney General Denies Responsibility in Stalled Tax Case

Deputy Attorney General has refused responsibility in the slow progress of a tax evasion probe by an agriculture business which surfaced before the recent huge tax scandal, while pointing out at his subordinates for the stall.

Darmono who assumed the post month after the previous deputy removed for his involvement in conspiracy against the Corruption Eradication Commission last November said "The officials who work on Asian Agri case files are research prosecutors."

Files and documents for prosecution of Asian Agri's Rp1.3 trillion tax evasion case had been moving back and forth from the corrupt Taxation Directorate to the prosecutor's office since the case emerged three years ago, for what the officials said was caused by incomplete data.

The statement came after Asian Agri refused to hand over its financial report to the parliament in a hearing with the house' special committee on tax,formed after the break out of the recent tax scam.

Darmono said the case files were currently at the Taxation Directorate to be completed.

The tax evasion by the company was leaked by a former employee of the company who was convicted and sentence to 11 years in prison for stealing from the company.

The agriculture giant denied such practice and even launched libel suit against media that brought up the issue to the public.